Question
You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount
You are given two choices of investments, Investment A and Investment B. Both investments have the same future cash flows. Investment A has a discount rate of 4%, and Investment B has a discount rate of 5%. Which of the following is true?
A.
The present value of cash flows in Investment A is equal to the present value of cash flows in Investment B.
B.
The present value of cash flows in Investment A is lower than the present value of cash flows in Investment B.
C.
The present value of cash flows in Investment A is higher than the present value of cash flows in Investment B.
D.
No comparison can be madewe need to know the cash flows to calculate the present value.
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Financial Intelligence
Authors: Income Mastery
1st Edition
1647773210, 978-1647773212
